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Title: |
Game Analysis on High-IPO Underpricing in China’s Stock Market |
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Source: |
International Conference on Engineering and Business Management 2012(Part 4 Urban Management and Financial Investment)
(pp 3015-3019)
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Author(s): |
Fanqiang Meng, College of Economics, Jinan University, Guangzhou, China
Shili Bi, College of Economics and Trades, Chongqing University of Technology, Chongqing, China |
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Abstract: |
IPO underpricing is a widespread phenomenon in the world stock market. Compared to the IPO underpricing rate level of other major countries (or regions) in the world, China's IPO underpricing rate is being at abnormal high level, which seriously affected the stock market’s development of China. Applying game theory in this paper, a game model has been established to analyze the phenomenon, which indicates the main reasons what lead to China's high IPO underpricing. Base on the study, we propose solutions to China's high IPO underpricing, and then offer the countermeasures and recommendations for the healthy development of China’s stock market.
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